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By Supplychainopz

Professionals in supply chain management use various methods to determine how to improve the performance of supply chain operations. Analysis of case study is certainly one of the most popular methods for people from business management background. In order to accelerate the learning, this article has gathered 20+ most sought-after supply chain case studies, analyzed/categorized them by industry and the findings are presented.

supply chain management in case study

Boeing wants to encourage more flight frequency and direct route using a smaller capacity aircraft. Then they decide to outsource many things such as the design, testing and production of key components to key industrial partners and try to reduce number of components that go to assembly. The ultimate goal is to finish the final production process within 3 days. Airbus takes a bit different marketing approach. They want to utilize high capacity airplane to help airlines drive the operating cost down. They decide to selectively outsource the production of parts and keep the design and production of key components in-house.

supply chain management in case study

Supply Chain of fashion industry involves a time based competition. Many customers have the unique product needs but a competition is very fierce because of the low barriers of entry. Many new players try to offer specialized products to customers all the time. This section features the supply chain case studies of H&M, Benetton, Zara and Adidas. –  H&M  aims to be the price leader in the fashion market.In order to materialize its vision, H&M tries to eliminate the middlemen in various stages of supply chain and consolidate the buying volumes. Product design is also the central part of its strategies. They don’t try to follow the high fashion designs but try to adopt the street trends which are easier to produce. At the end of the day, they can bring products to market within 2-3 weeks. –  Benetton , in contrast, chooses to have a full control of its production but allow its licensees to operate the stores so they can focus on production and quality control. The reason is that they would like to create the worldwide brand awareness. For fast moving products, they use the production facilities in Europe. Asian suppliers will perform production for standardized products. –  Zara  is very famous for its time based strategy. In order to launch a new product within 15 days, Zara uses a small lot production. A new product will be tested in pilot stores. If product sales is good, a larger batch will be ordered. Otherwise, remaining products will be removed from the shelves and sold as mark-down in other stores. This creates the perception among consumers that Zara’s products are unique and you have to take it while stock lasts. Vertical integration contributes to the success of Zara, they own the majority of its production facilities and stores (this is the reason why Quick Response can be effectively implemented). Its automated distribution centers are strategically located between the center of populations so products are delivered to stores quickly. Zara also works with Air France, KLM Cargo and Emirates Air in order that they can coordinate directly with the airlines to make the outbound shipments to its stores and bring back some raw materials and semi-finished materials with return legs. The last supply chain case study in the fashion retailing industry is  Adidas . In order to cope with changing customers’ demand, they decide to undertake Mass Customization strategy. The whole idea is to develop, market and deliver the product variety that most customers will find what they want. The first steps towards mass customization is to strategically offer the product choices. Too few variations will disappoint a customer but too many variations will simply postpone a buying decision. After that, Adidas asks the same key suppliers to produce custom components in order to achieve the economy of scale. In order to compensate a long waiting time, Adidas uses air freight or courier service. The reason why they can do this is that customized products are sold directly to customers so they have the higher profit margin to compensate the higher transportation cost. Supply chain strategy of the fashion retailing industry is summarized as below,


supply chain management in case study

FMCG industry is typically the products sold to customers at a low cost and will be completely consumed within 1 year. The nature of this industry is the short product life cycle, low profit margin, high competition and demand fluctuation. This section will present the case studies of P&G, Unilever and Coca-Cola respectively. Forecasting and new product introduction has always been the issues for many FMCG companies,  P&G  is no exception. To cope with this, P&G conducts a merchandise testing at the pilot stores to determine the customer’s response to new product before the launch. The result is that the forecast accuracy is improved because a demand planner has an additional source data to make a better decision. Moreover, products can be shipped to stores in-time then lost sales is minimal. –  Unilever  also feels that the competition in FMCG industry has significantly increased. They have to launch the new products on regular basis but the forecasting of new product is difficult. So they create a better classification of new products (base, relaunch, repack, new) using a regression model to identify potential forecast errors for each type of new product. –  Coca-Cola  doesn’t really have many stock keep units when compared with other companies in the same industry. However, products go to over 2.4 million delivery points through over 430 distribution centers. Managing transportation at this scale is the absolute challenge. In order to streamline the delivery, Coca-Cola implemented a vehicle routing software. The reason is that is the software vendor has a very good relationship with Coca-Cola’s legacy ERP software vendor. Moreover, the vendor has a solid connection with the university who can help to develop the algorithm that fits in with the business’ needs. The result is that transportation planners at each distribution center can use the new tool to reduce travelling time/distance on daily basis.

supply chain management in case study

Lean manufacturing concept has been implemented widely in the automotive industry so the case studies about lean manufacturing is very readily available. Due to the increasing competition in the automobile industry, car manufacturers have to launch a new model to the market more frequently. This section will show you how BMW manages a long term planning, how Ford applies lean concept to the new product development and how Hyundai manages the production planning and control. –  BMW  uses a 12-year planning horizon and divides it into an annual period. After that, they will make an annual sales forecast for the whole planning horizon. After the demand is obtained, they divide sales into 8 market and then select the appropriate production sites for each market, considering overall capacity constraints and total cost. As you may notice, this kind of a long range planning has to be done strategically. –  Ford  calls its product development system as “work streams” which include the body development, engine development, prototyping and launch process . The cross-functional team are the experts and their roles are to identify key processes, people, technology necessary for the development of new prototype. Each work stream team is responsible to develop timeline of each process. Detailed plan is usually presented on A3 sized paper. They clearly identifying current issues they are facing with supporting data, drawings and pictures. On weekly basis, they organize a big group meeting of all work stream team to discuss the coordination issues. –  Hyundai  deploys a centralized planning system covering both production and sales activities across the facilities and functional areas. They develop a 6-month master production plan and a weekly and a daily production schedule for each month in advance. During a short term planning (less than one month), they pay much attention to the coordination between purchasing, production and sales. Providing a long term planning data to its suppliers help to stabilize production of its part makers a lot.

supply chain management in case study

Life cycle of technology products is getting shorter and shorter every day. Unlike FMCG, the launch of a new product in the hi-tech industry requires the investment in research and development quite extensively. Then, a poor planning will result in a massive loss. This section will cover JIT and outsourcing by Apple Inc, Supply Chain Risk Management by Cisco System, Technology Roadmap by Intel, Supply Chain Network Model by HP, Mass Customization by Dell and Quality Management by Sam Sung. Steve Jobs invited the Tim Cook to help to improve  Apple’s Supply Chain  in 1998. Jobs told Cook that he visited many manufacturing companies in Japan and he would like Cook to implement the JIT system for Apple. Jobs believed that Apple’ supply chain was too complex then both of them reduced the number of product availability and created 4 products segment, reduced on hand inventory and moved the assembling activities to Asia so they could focus on developing the breathtaking products that people wanted to buy. –  Cisco Systems  would like to be the brand of customer choice so they implement a very comprehensive supply chain risk management program by applying basic risk mitigation strategies, establishing appropriate metrics, monitoring potential supply chain disruptions on 24/7 basis and activate an incident management team when the level of disruption is significant. –  Intel ‘s new product development is done by the process called Technology Roadmap. Basically, it’s the shared expectations among Intel, its customers and suppliers for the future product lineup. The first step to prepare the roadmap is to identify the expectations among semiconductor companies and suppliers. Then they identify key technological requirements needed to fulfill the expectations. The final step is to propose the plan to a final meeting to discuss about the feasibility of project. Some concerning parties such as downstream firms may try to alter some aspects of the roadmap. Technology Roadmap allows Intel to share its vision to its ecosystem and to utilize new technology from its suppliers. –  HP ‘s case study is pretty unique. They face with a basic question, where to produce, localize and distribute products. Its simple supply chain network model is presented below,

supply chain management in case study

From this example, only 3 possible locations result in 5 different way to design the supply chain. In reality, HP has more production facilities than the example above so there are so many scenarios to work with. How should HP decide which kind of a supply chain network configuration they should take to reduce cost and increase service to customer? The answer is that they use the multi-echelon inventory model to solve the problem. –  Dell  is one of the classic supply chain case studies of all time. Many industries try to imitate Dell’s success. The key ingredients of Dell’s supply chain are the partnership with suppliers, part modularity, vendor managed inventory program, demand management and mass customization. Also, you can find the simplified process map of Dell’s order-to-cash process as below,

–  Sam Sung  has proven to be the force to be reckoned with in the hi-tech industry. The secret behind its supply chain success is the use of Six Sigma approach. They studied how General Electric (GE), DuPont and Honeywell implemented six sigma. After that, they have created their own implementation methodology called DMAEV (define, measure, analyze, enable, verify). They use the global level KPI to ensure that each player in the same supply chain is measured the same way. Also, they utilize SCOR Model as the standard process. Any process changes will be reflected through an advance planning system (APS).

supply chain management in case study

The last industry covered here is the general merchandise retailing industry. The critical success factor of this industry is to understand the drivers of consumer demand. Four case studies will be presented, namely, 7-11, Tesco, Walmart, Amazon and Zappos. –  7/11  is another popular case study in supply chain management. The integration of information technology between stores and its distribution centers play the important role. Since the size of 7/11 store is pretty small, it’s crucial that a store manager knows what kind of products should be displayed on shelves to maximize the revenue. This is achieved through the monitoring of sales data every morning. Sales data enables the company to create the right product mix and the new products on regular basis. 7/11 also uses something called combined delivery system aka cross docking. The products are categorized by the temperature (frozen, chilled, room temperature and warm foods). Each truck routes to multiple stores during off-peak time to avoid the traffic congestion and reduce the problems with loading/unloading at stores. –  Tesco  is one of the prominent retail stores  in Europe. Since UK is relatively small when compared with the United States, centralized control of distribution operations and warehouse makes it easier to manage. They use the bigger trucks (with special compartments for multi-temperature products) and make a less frequent delivery to reduce transportation cost. Definitely, they use a computerized systems and electronic data interchange to connect the stores and the central processing system. –  Wal-Mart ‘s “Every Day Low Prices” is the strategy mentioned in many textbooks. The idea is to try not to make the promotions that make the demand plunges and surges aka bullwhip effect. Wal-Mart has less than 100 distribution centers in total and each one serves a particular market. To make a decision about new DC location, Walmart uses 2 main factors, namely, the demand in the proposed DC area and the outbound logistics cost from DC to stores. Cost of inbound logistics is not taken into account. There are 3 types of the replenishment process in Wal-Mart supply chain network as below,

In contrary to general belief, Wal-mart doesn’t use cross-docking that often. About 20% of orders are direct-to-store (for example, dog food products). Another 80% of orders are handled by both warehouse and cross dock system. Wal-Mart has one of the largest private fleet in the United States. The delivery is made 50% by common carriers and 50% by private fleet. Private fleet is used to perform the backhauls (picks up cargoes from vendors to replenish DCs + sends returned products to vendors). Short-hauls (less than one working day drive) is also done by the a private fleet. For long-hauls, the common carriers will be used. There are 2 main information system deployed by Wal-Mart. “Retail Link” is the communication system developed in-house to store data, share data and help with the shipment routing assignments. Another system is called “Inforem” for the automation of a replenishment process. Inforem was originally developed by IBM and has been modified extensively by Wal-Mart. Inforem uses various factors such as POS data, current stock level and so on to suggest the order quantity many times a week. Level of collaboration between Wal-Mart and vendors is different from one vendor to the other. Some vendors can participate in VMI program but the level of information sharing is also different. VMI program at Wal-Mart is not 100% on consignment basis. –  Amazon  has a very grand business strategy to “ offer customers low prices, convenience, and a wide selection of merchandise “. Due to the lack of actual store front, the locations of warehouse facilities are strategically important to the company. Amazon makes a facility locations decision based on the distance to demand areas and tax implications. With 170 million items of physical products in the virtual stores, the back end of order processing and fulfillment is a bit complicated. Anyway, a simplified version of the order-to-cash process are illustrated as below,

Upon receipt of the orders, Amazon assign the orders to an appropriate DC with the lowest outbound logistics cost. In Amazon’s warehouse, there are 5 types of storage areas. Library Prime Storage is the area dedicated for book/magazine. Case Flow Prime Storage is for the products with a broken case and high demand. Pallet Prime Storage is for the products with a full case and high demand. Random Storage is for the smaller items with a moderate demand and Reserve Storage will be used for the low demand/irregular shaped products. Amazon uses an propitiatory warehouse management system to make the putaway decision and order picking decision. After the orders are picked and packed, Amazon ships the orders using common carriers so they can obtain the economy of scale. Orders will arrive at UPS facility near a delivery point and UPS will perform the last mile delivery to customers. Amazon is known to use Sales and Operations Planning (S&OP) to handle the sales forecast. Anyway, this must be S&OP process at product family/category level. To compete with other online retailers,  Zappos  pays much attention to the way they provide the services to customers. In stead of focusing on the call center productivity, Zappos encourages its staff to spend times over the phone with customers as long as they can so they can fully understand the customer’s requirements. They also upgrade the delivery from 3 days to 1 day delivery in order to exceed customer expectation.

supply chain management in case study

All case study demonstrates that supply chain management is truly the strategic initiatives, not merely a cost cutting technique. Leading companies have a very strong customer focus because almost all of initiatives are something to fill the needs of customers. Relationship management is the unsung hero in supply chain management. It’s the prerequisite to the success of every supply chain. And at the end of the day, it comes down to the quality of supply chain people who analyze, improve and control supply chain operations. – See more at: http://www.supplychainopz.com/2014/04/supply-chain-management-case-study.html#sthash.MrnrGsyY.dpuf

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supply chain management in case study

Walmart Supply Chain: Building a Successful Integrated Supply Chain for Sustainable Competitive Advantage

  • Case Studies

Introduction

The global business landscape has witnessed an increasingly fierce competition, pushing companies to seek effective strategies to maintain and enhance their competitiveness. Among these strategies, the role of supply chain capability stands out as a key factor in driving success. A well-optimized supply chain not only ensures efficient delivery and cost-effectiveness but also provides companies with a competitive advantage in the market. In this context, Walmart, the world’s largest retailer, has demonstrated a highly successful and integrated Walmart supply chain, propelling its growth and dominance in the retail industry.

This case study aims to delve into the significance of supply chain capability for enhancing a company’s competitiveness and how it serves as a competitive advantage for companies. Additionally, we will explore the imperative need for supply chain redesign in the global economy to adapt to the challenges of the modern era of globalization. Focusing on Walmart’s exemplary supply chain practices, the purpose of this case study is to analyze the features of its successful integrated supply chain while identifying relevant issues in the context of the current globalized market.

[Read More: Rivian: Navigating Supply Chain and Operational Challenges and Embracing Growth ]

Walmart’s Supply Chain: Integrated Supply Chain Success

Data-driven success factors.

In the realm of modern supply chain management, data-driven strategies play a pivotal role in enhancing a company’s competitiveness. Walmart’s remarkable success as the world’s largest retailer can be attributed to its astute utilization of data analysis and advanced technologies within its integrated supply chain. This section delves into the key data-driven success factors that have propelled Walmart’s supply chain to the forefront of the retail industry.

[Read More: ERP Master Data: A Guide to Improve Quality & Governance ]

Role of Data Analysis through Barcode Scanning and Point-of-Sale Systems

Data analysis is at the core of Walmart’s supply chain prowess. The company has implemented sophisticated barcode scanning and point-of-sale systems to collect real-time data from its stores. By employing these technologies, Walmart gains valuable insights into customer buying behavior, sales trends, and inventory levels. The ability to analyze this data enables the retail giant to make informed decisions on product procurement, inventory management, and demand forecasting.

Efficient Supply Chain Practices: Automated Distribution Centers and Computerized Inventory Systems

Automation is a key component of Walmart’s efficient supply chain practices. The company has strategically invested in automated distribution centers, streamlining the flow of products from manufacturers to stores. These automated facilities not only optimize the handling and movement of goods but also enable faster order fulfillment and replenishment. Additionally, computerized inventory systems provide Walmart with accurate and up-to-date information about stock levels, allowing for precise inventory control and reducing the risk of stockouts or excess inventory.

supply chain management in case study

Utilizing Walmart’s Own Trucking System and Cross-Docking Logistics

Another critical factor contributing to Walmart’s supply chain success is the utilization of its private trucking system and cross-docking logistics. By maintaining its own trucking fleet, Walmart gains greater control over transportation and delivery schedules, leading to improved efficiency and timely product replenishment. Furthermore, the adoption of cross-docking logistics techniques has enabled Walmart to minimize the need for intermediate storage, leading to reduced handling costs and faster product movement through the supply chain.

[Read More: The Ultimate Guide to Contract Logistics: What You Need to Know ]

Information Technologies Driving Efficiency

In Walmart’s journey towards becoming a global leader, information technologies have played a pivotal role in driving efficiency within the integrated Walmart supply chain. The retail giant has strategically adopted various IT initiatives to optimize its operations, enhance collaboration with suppliers, and achieve real-time inventory targeting. These technologies have contributed significantly to Walmart’s supply chain success, allowing them to maintain a competitive edge in the retail industry.

Supply Chain Digitalization Assessment

Collaborative Planning, Forecasting, and Replenishment (CPFR)

One of the key information technologies that have bolstered Walmart’s supply chain efficiency is the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR). This system facilitates seamless communication and coordination between Walmart and its supply chain partners, including suppliers and distributors. By sharing real-time sales data and demand information, CPFR enables accurate forecasting and demand planning, minimizing information distortion, and promoting synchronized inventory replenishment. The CPFR program has been instrumental in enhancing overall supply chain visibility and efficiency, allowing Walmart to respond promptly to fluctuations in demand and supply, reducing stockouts, and optimizing inventory levels.

Vendor-Managed Inventory (VMI) and Its Benefits

Walmart’s adoption of Vendor-Managed Inventory (VMI) has been another critical information technology-driven initiative. Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. By granting suppliers access to real-time inventory data and sales information, Walmart facilitates efficient inventory tracking and replenishment. This hands-on approach by suppliers results in streamlined inventory management, reduced delays in replenishment, and lower stockouts. The VMI model has proved particularly advantageous for Walmart due to its vast product range and numerous suppliers, making inventory management complex and costly if managed solely by the retailer.

[Read More: Vendor Managed Inventory: A Comprehensive Guide ]

Leveraging RFID Technology for Real-Time Inventory Targeting

RFID (Radio Frequency Identification) technology has been a game-changer in Walmart’s pursuit of real-time inventory targeting and enhanced supply chain visibility. By employing RFID tags on products, Walmart can track the movement of inventory throughout the supply chain in real-time. RFID enables accurate and automated inventory tracking, reducing the need for manual counting and minimizing errors in inventory management. The technology also provides crucial details, such as production time, location, and expiry dates of goods, allowing for efficient inventory targeting and better control over inventory turnover. RFID technology has been instrumental in Walmart’s cost reduction efforts, ensuring optimal stock levels while avoiding overstocking and unnecessary inventory holding costs.

Achieving Competitive Advantage through Strategy

Walmart’s competitive strategy: “everyday low prices” (edlp).

Walmart’s competitive advantage is deeply rooted in its strategic focus on offering “Everyday Low Prices” (EDLP) to its customers. The EDLP strategy revolves around providing high-quality products and services at the lowest possible prices, ensuring that customers can benefit from affordable prices every day. This approach sets Walmart apart from its competitors and has been instrumental in establishing the company as a dominant force in the retail industry.

Implementing the “Everyday Low Costs” (EDLC) Policy through Direct Procurement

To support its EDLP strategy, Walmart follows an “Everyday Low Costs” (EDLC) policy in its supply chain management. One of the key elements of the EDLC policy is the direct procurement of items from suppliers, eliminating intermediaries in the process. By procuring directly from manufacturers, Walmart can negotiate and understand their cost structure, enabling them to make informed purchasing decisions and obtain the best prices for their products.

Walmart’s emphasis on direct procurement is further bolstered by the use of technology and information systems. The company has implemented a central database, store-level point-of-sale systems, and a satellite network, along with barcodes and RFID technology as previously mentioned. These technologies allow Walmart to gather and analyze real-time store-level information, including sales data and external factors like weather forecasts, to enhance the accuracy of purchasing predictions. This integration of information technology helps Walmart optimize its procurement process and maintain low costs throughout the supply chain.

Utilizing Information Systems for Better Inventory Management

Effective inventory management is critical for Walmart to sustain its competitive advantage through the EDLP strategy. The company relies on information systems and information technology (IT) capabilities to control inventory levels efficiently. By capturing customers’ demand information, Walmart can identify popular products and stock them adequately, leading to an overall reduction in inventory.

One notable example of Walmart’s successful utilization of information systems is its collaboration with Procter & Gamble (P&G) through the Collaborative Planning, Forecasting, and Replenishment (CPFR) program. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. Additionally, Walmart’s Retail Link , developed in the early 1990s, serves as another vital IT application for storing data, sharing it with vendors, and aiding in shipment routing assignments.

supply chain management in case study

Challenges and Opportunities

Supplier cooperation and collaboration.

Walmart’s supply chain success can be attributed to its strong relationships with suppliers, but achieving and maintaining supplier cooperation and collaboration is not without challenges. Let’s explore the challenges and opportunities in this area:

Challenges in Obtaining Suppliers’ Cooperation

  • Supplier Resistance to Direct Procurement: Walmart follows an “Everyday Low Costs” (EDLC) policy by directly procuring items from suppliers, eliminating intermediaries. However, some suppliers may be reluctant to cooperate with this approach as it can disrupt existing distribution channels and potentially reduce their bargaining power.
  • Complex Supplier Networks: With thousands of suppliers across various product categories, managing diverse supplier networks can be challenging. Each supplier may have different production and delivery schedules, making coordination difficult.
  • Balancing Profit Margins: As Walmart emphasizes low prices, maintaining a balance between cost savings and ensuring suppliers’ profitability can be a delicate task. Suppliers may resist pressure to reduce prices further to maintain their margins.

Opportunities for Enhanced Supplier Cooperation and Collaboration

  • Establishing Transparent Communication Channels: Walmart can create transparent and open communication channels with its suppliers to foster better cooperation. Clear communication regarding demand forecasts, inventory levels, and potential disruptions can help suppliers plan their production and deliveries more efficiently.
  • Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities.
  • Collaborative Planning, Forecasting, and Replenishment (CPFR): Walmart can leverage technology, such as CPFR, to share real-time sales data and demand forecasts with its suppliers. This collaborative approach allows suppliers to align their production and inventory management with actual market demand, reducing the bullwhip effect and optimizing the supply chain.
  • Sharing Inventory Visibility: Providing suppliers with access to inventory data, including stock levels and sales information, can help them plan production and deliveries more effectively. This visibility can prevent stockouts and overstocking issues.
  • Long-term Partnerships: Building long-term strategic partnerships with key suppliers can create a sense of mutual commitment and trust. By assuring consistent business over an extended period, Walmart can foster stronger relationships and supplier loyalty.

[Read More: 3 Types of Supplier Segmentation Matrix You Can Use to Classify Suppliers ]

Importance of Collaboration to Enhance Supply Chain Efficiency

  • Reducing Lead Times: Effective collaboration with suppliers can help shorten lead times by streamlining production and transportation processes. Faster lead times enables Walmart to respond quickly to changes in demand, reducing the risk of stockouts.
  • Efficient Inventory Management: Collaborative efforts with suppliers enable better inventory planning and management. Suppliers can adjust production based on actual demand, reducing excess inventory and associated costs.
  • Supply Chain Flexibility: Collaboration fosters agility and adaptability in the supply chain. When Walmart and its suppliers work together closely, they can quickly adjust to market changes, supply disruptions, or new opportunities.
  • Cost Reduction: Improved supplier collaboration can lead to cost-saving opportunities. By eliminating unnecessary intermediaries and optimizing production and transportation, overall supply chain costs can be minimized.

supply chain management in case study

The Incentives Alignment Issue

In any supply chain, maintaining a balance of profit margins among different parties is essential for efficient collaboration and sustained success. However, achieving incentives alignment can be challenging, and this issue is particularly relevant in the case of Walmart supply chain. Addressing misalignment of interests between Walmart and its suppliers is crucial for optimizing the overall performance of the supply chain and ensuring long-term success. The following points highlight the incentives alignment issue faced by Walmart:

1. Balancing Profit Margins Among Different Supply Chain Parties:

Walmart’s success is attributed to its ability to offer high-quality products and services at the lowest affordable prices. To achieve this, Walmart employs various cost-cutting strategies, such as direct procurement from suppliers and streamlined distribution practices. While these strategies help Walmart maintain competitive prices, they can create challenges for suppliers who may face pressure to lower their own profit margins to meet Walmart’s demands. This misalignment of profit margins can lead to strained relationships and potentially impact the overall efficiency of the supply chain.

2. Misalignment of Interests Between Walmart and Suppliers:

Walmart’s size and market dominance can lead to power imbalances in supplier relationships. Suppliers may feel compelled to comply with Walmart’s demands to maintain access to its large customer base. However, this can lead to situations where suppliers may not have enough leverage to negotiate favorable terms, impacting their own profitability. As a result, suppliers may be less inclined to invest in innovations or improvements that would benefit the supply chain as a whole.

3. Conflict Between Inventory Growth and Sales Growth:

Walmart faced inventory growth issues in the past, with the inventory growth rate outpacing the sales growth rate. This can be indicative of conflicting incentives between Walmart and its suppliers. Suppliers may prioritize producing and delivering more inventory to ensure they meet Walmart’s demands, even if the sales growth does not keep up with the increased inventory. This misalignment can lead to excess inventory, increased carrying costs, and potential stockouts.

4. The Need for a New Triple-A Supply Chain:

Addressing the incentives alignment issue requires a fundamental shift in the supply chain strategy. Lee (2004) proposed the concept of a new Triple-A supply chain for Walmart and other companies in the 21st century. The Triple-A supply chain emphasizes agility, adaptability, and alignment to create a sustainable competitive advantage. Achieving alignment among all participating parties is crucial to optimize supply chain performance and ensure that risks and rewards are distributed fairly.

The Triple-A Supply Chain Approach

In today’s competitive business landscape, companies like Walmart recognize that a successful supply chain is not just about having a fast and cost-effective system. To maintain a sustainable competitive advantage and address the challenges of the global economy, it is essential to redesign supply chains that incorporate agility, adaptability, and alignment. This section explores the concept of the Triple-A Supply Chain Approach, which emphasizes these three key qualities that an ideal supply chain should possess: agility, adaptability, and alignment of interests among all participating parties.

The Three Qualities of an Ideal Supply Chain

Agility for quick and cost-effective responses:.

Agility refers to a supply chain’s ability to respond quickly and cost-effectively to sudden changes in demand, supply, and external disruptions. In the fast-paced business environment, companies must be able to adapt swiftly to fluctuations in customer preferences, market conditions, and unforeseen events. For Walmart, agility has been a critical factor in maintaining its leadership position in the retail industry. The company’s investments in technology and supply chain optimization strategies have allowed them to optimize inventory levels and respond rapidly to changing customer demands, ensuring the availability of products while minimizing inventory costs.

Adaptability to Handle Changes in Demand and Supply:

Supply chains should be adaptable and flexible enough to handle variations in demand and supply patterns. Demand forecasts can be uncertain, and unexpected supply chain disruptions may occur, making adaptability a vital quality. Walmart’s focus on omnichannel and various fulfillment options, such as in-store pickup and ship from store, demonstrates their commitment to adaptability. By utilizing multiple channels, Walmart can cater to diverse customer preferences, ensuring an uninterrupted flow of products to meet demand.

Alignment of Interests among All Participating Parties:

One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers, distributors, and retailers. Walmart’s scale and dominance in the retail market have allowed them to establish strong relationships with vendors, enabling strategic partnerships with vendors who can meet their high-volume demands. Additionally, Walmart’s adoption of Vendor Managed Inventory (VMI) allows suppliers to manage their own inventory stored in Walmart’s warehouses. This collaboration aligns the incentives of suppliers and Walmart, streamlining inventory management and ensuring timely replenishment.

supply chain management in case study

In conclusion, Walmart’s integrated supply chain has been a crucial factor in the company’s global dominance and sustained competitive advantage. By strategically investing in technology and optimizing its supply chain, Walmart has managed to maintain its position as the world’s largest retailer with over $572 billion in revenue in 2022.

Walmart’s success serves as a compelling example of the importance of a well-integrated supply chain in achieving and sustaining competitive advantage in the global market. As businesses continue to navigate the complexities of the 21st-century economy, building and enhancing supply chain capabilities will remain a critical aspect of ensuring sustainable growth and profitability. By prioritizing agility, adaptability, and alignment, companies can follow in Walmart’s footsteps and position themselves for continued success in the dynamic and ever-evolving global marketplace.

References:

  • Lee H.L. (2004): The triple A supply chain. “Harvard Business Review”, Vol. 82, No. 10, pp. 102-112. 
  • Nguyen T.T.H. (2017): Wal-Mart’s successfully integrated supply chain and the necessity of establishing the Triple-A supply chain in the 21st century. “Journal of Economics and Management”, Vol. 29(3), pp. 102-117

About the Author –  Dr Muddassir Ahmed

Dr MuddassirAhmed  is the Founder & CEO of SCMDOJO. He is a  global speaker ,  vlogger  and  supply chain industry expert  with 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East and South East Asia in various Supply Chain leadership roles.   Dr. Muddassir   has received a PhD in Management Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools and access to experts.

You can follow him on  LinkedIn ,  Facebook ,  Twitter  or  Instagram .

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People working in a datacenter

During the last decade, a cascading series of unpredictable events—including earthquakes, volcanic eruptions, catastrophic storms, disease outbreaks and armed conflicts—has exposed deep fragilities in global supply chains. These events served as initial alarm bells for much greater challenges to come.

Intricately woven supply chains were built on concepts such as just-in-time manufacturing and designed to reduce labor and operating costs. Over the years, companies relentlessly optimized their supply chains to serve markets with relatively predictable supply and demand patterns. However, recent and unprecedented events have shown how these choices have created inflexible supply chains that are brittle under stress.

Breaking a single link in a globalized supply chain can have a ripple effect, impacting customers thousands of miles away from the point of disruption. “Supply chain issues” has become a catchphrase for economic dislocation.

“In recent years, supply chain has gone from the background, something people did not think about, to a boardroom-level topic,” says Rob Cushman, Senior Partner, IBM Supply Chain Transformation. “It’s a concept that people have had very painful personal experiences with. And that’s why thinking about supply chain is pivoting from cost to being about resilience and agility, and ultimately driving growth.”

Cost savings

By deploying a cognitive supply chain, IBM reduced supply chain costs by USD 160 million   and built in more resilience and agility

100% order fulfillment 

Even during the peak of the covid-19 pandemic, IBM maintained a 100% order fulfillment rate of its products to clients

The worldwide reach, size and complexity of its supply chain organization represented a significant challenge as IBM began exploring transformation strategies for delivering a differentiated customer experience to promote customer loyalty and growth. IBM employs supply chain staff in 40 countries and makes hundreds of thousands of customer deliveries and service calls in over 170 nations. IBM also collaborates with hundreds of suppliers across its multi-tier global network to build highly configurable and customized products to customer specifications.

Previously, the IBM supply chain ran on legacy systems spread across different organizational silos, making information sharing slow and incomplete. Employees also performed much of their work on spreadsheets, which impeded collaboration and real-time data transparency.

However, at the same time the IBM supply chain was re-thinking business processes and transforming its technology platforms, IBM was making major strides in AI, cloud, data fabric, IoT, edge computing and other tools. “We saw the advances IBM was making in all these new technologies,” says Ron Castro, Vice President of IBM Supply Chain. “So, we asked, ‘Why not leverage our own technology to move our own supply chain forward?’”

“The principle behind why we embarked on this journey was to answer the question, ‘How can we best react to disruptions to manage resiliency and our client experience?’” says Castro. “We needed to identify disruptions quickly, analyze the data, get insights and decide on the best course of action.”

IBM supply chain management set out a bold vision to build its first cognitive supply chain. The aim was to have an agile supply chain that extensively uses data and AI to lower costs, exceed customer expectations, ruthlessly eliminate or automate non-value add work and exponentially improve the experience of supply chain colleagues.

IBM Consulting® was brought in at the beginning to help develop the processes required to drive the transformation. “We consider ourselves ‘Client Zero’ for IBM Consulting,” says Debbie Powell, IBM Digital Supply Chain Transformation Leader. “We have the technology to do what we need to do. It’s the culture and the processes where change was needed. We also realized that a lot of our knowledge was tribal and often depended on one person. We needed to digitize and democratize knowledge to support decision-making throughout the organization.”

IBM Consulting helped the IBM supply chain team use Design Thinking methods to plan its digital transformation and move from sequential to continuous planning. “We put a lot of effort into agility and a cultural shift to empower people and adjust workflows in a controlled way,” says Matthias Gräfe, Director of IBM Supply Chain Transformation. “We went from a top-down approach to identifying personas from the bottom up, the people that actually make the decisions.”

“Successful digital transformation required us to challenge traditional ways of working that were held sacred for decades and win the hearts and minds of supply chain colleagues for change to stick,” says Takshay Aggarwal, Partner, IBM Supply Chain Transformation.

At a high level, the IBM supply chain digital transformation revolves around building sense-and-respond capabilities. This was accomplished by democratizing data and automating and augmenting decisions achieved by combining cognitive control tower, cognitive advisor, demand-supply planning and risk-resilience solutions. “We view the cognitive control tower as the single source of truth where you have access to all the data and it helps advise the best course of action,” says Castro. “It also helps gather insights from the information quickly across the end-to-end supply chain.”

The cognitive control tower is powered by the  IBM® Cognitive Supply Chain Advisor 360  Solution, which runs on  IBM Hybrid Cloud  and on  Red Hat® OpenShift®  (link resides outside of ibm.com) software. Cognitive Advisor 360 enables real-time, intelligent supply chain visibility and transparency. It also senses and responds to changes in demand as they happen and simplifies the automation of supplier management.

The system uses IBM Watson® technology to enable natural language queries and responses, which accelerates the speed of decision-making and offers more options to correct issues. “I can ask—in natural language—about part shortages, order impacts, risks to revenues and trade-offs,” says Cushman. “There’s a button that recommends actions to solve issues — that’s what Watson does. It’s augmented intelligence so we empower people with better information to make data-driven decisions very quickly.”

“With the cognitive supply chain, we have the benefit of bringing in all these data from legacy systems and internal and external sources, as well as unstructured data, to apply advanced analytics and different elements of AI,” says Castro. “And since the system responds to natural language, think about the power of being able to extract data and get insights and recommendations without having to be an expert in a legacy system or an ERP platform.”

The IBM cognitive supply chain technology architecture also includes  IBM Edge Application Manager ,  IBM Maximo® Visual Inspection  and  IBM Track and Trace IoT —an integrated stack of solutions that connect data end-to-end across the supply chain. “Our procurement, planning, manufacturing and logistics data are connecting in close to real time,” says Cushman. “That’s how we can share inbound information from suppliers, manufacturing status updates with our external manufacturing partners and delivery information with our customers.”

“We’ve added demand sensing, so that the solution pulses the market for changes in demand, predicting the future. We’ve also embedded a cloud-based risk management tool called Resilinc into our procurement and inbound parts management process,” says Cushman. “It essentially uses AI to crawl the web and if there is a disruption, we can take action quickly to secure a second supply source.”

On a minute-by-minute basis, one of the biggest advantages of IBM’s cognitive supply chain is that it provides employees with immediate access to the information they need to read and mitigate disruptions. “There is unbelievable power that comes from taking lots of disparate data and putting it where people can see and understand it,” says Cushman.

“The real-time, single-view of the truth increases the velocity of decisions and leverages rapid response,” says Castro. “It helps us develop ‘what-if’ scenario analysis from a planning perspective all the way through to the execution team and suppliers.”

In fast-moving, real-world situations, quick, informed decisions provide a competitive advantage. “In the past, a major disruption—such as the closing of a major airport—would take days for us to understand the immediate impacts. With our current solution, we have ‘what-if’ capability that brings this analysis down to minutes,” says Powell. “In a supply constrained environment, whoever gets the information first wins.”

Since its cognitive supply chain became operational, IBM has saved USD 160 million related to reduced inventory costs, optimized shipping costs, better decision-making and time savings. “When mitigating a part shortage, it used to take four to six hours per part number,” says Powell. “We’ve brought that down to minutes and made further improvements to seconds.”

“Where’s my stuff?” is a common question in the supply chain industry. Finding an answer can entail hours of phone calls, emails and ERP queries across different geographies. “We’ve built a solution where you can log in and enter an order and you’ll have an answer in about 17 seconds,” says Cushman. “That was an enormous pivot and a powerful change in how we do business.”

By using its cognitive supply chain platform, the IBM supply chain team is also able to create new capabilities much faster. “Years ago, when we started this journey, we needed a long, looping roadmap with one or two years required for major capability upgrades,” says Castro. “With this digital enterprise, we now have teams that complete deployments in two or three weeks. We’ve moved to much more agile development.”

Despite dislocations caused by the COVID-19 pandemic, IBM fulfilled 100% of its orders by using its cognitive supply chain to quickly re-source and re-route parts as necessary. “During the last two years, the IBM supply chain did not fall behind. We met our commitments. Everyone else was screaming supply chain issues and we’re shipping products,” says Daniel Thomas, IBM Business Optimization Manager and Chief of Staff. “We delivered on our promises during the height of the disruptive era we live in.”

“Guaranteed supply is important, but many of our clients are also looking for predictability of supply,” says Castro. “The tools we have now help us address both issues. They enable us to manage the demand side to meet the right client expectations.”

“We have a responsibility to inspire younger supply chain leaders who will keep the IBM supply chain at the cutting edge and beyond for years to come,” says Aggarwal. “People entering the work force today have different experiences than previous generations. They are digital natives and expect a consumer-grade experience when managing their work. As we embarked on our journey, we actively engaged them in designing workflows and digital capabilities. There were trials and tribulations and we had multiple failures in design and rollout. Architecting the cognitive supply chain, and learning from failures and successes, made our young leaders champions of the cognitive supply chain and constant innovators of new capabilities.”

“IBM is the only global services company with its own multibillion-dollar supply chain, and we’ve transformed it into a data-driven architecture to drive our business. There’s a richness of experience that we bring to client conversations because we’ve done this work for ourselves,” says Cushman. “It’s all about how a supply chain delivers a differentiated customer experience to enable stickiness and growth.”

“The collaboration between IBM Systems and IBM Consulting teams to transform our own business and demonstrate the power of exponential technologies in supply chain has been one of our finest moments as a company,” says Cushman. “We look forward to sharing our real-world experience and learnings with our worldwide community of customers, partners and clients.”

IBM logo

IBM is an information technology company based in Armonk, New York. Founded in 1911, the company offers hardware, software and services in cloud computing, AI, commerce, data and analytics, IoT, mobile and cybersecurity, as well as business resiliency, strategy and design solutions. IBM has a global workforce of more than 280,000 employees serving clients in over 175 countries through IBM Consulting, IBM Software and IBM Infrastructure.

To learn more about the IBM solutions featured in this story, please contact your IBM representative or IBM Business Partner.

Build AI-enabled, sustainable supply chains that prepare your business for the future of work, create greater transparency and improve employee and customer experiences

IBM Sterling Supply Chain Insights with Watson provides visibility across the entire supply chain.

Sourcing minerals responsibly with blockchain technology

© Copyright IBM Corporation 2022. IBM Corporation, New Orchard Road, Armonk, NY 10504

Produced in the United States of America, July 2022.

IBM, the IBM logo, ibm.com, IBM Consulting, IBM Watson and Maximo are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at  ibm.com/legal/copyright-trademark .

Red Hat®, JBoss®, OpenShift®, Fedora®, Hibernate®, Ansible®, CloudForms®, RHCA®, RHCE®, RHCSA®, Ceph®, and Gluster® are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the United States and other countries.

This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates.

The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

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Powering up resilience to mitigate supply chain disruption

When supply chain disruptions strike, grocery shelves go empty. Here’s how one company’s new system is keeping them full.

  • Call for Change
  • When Tech Meets Human Ingenuity
  • A Valuable Difference
  • Related Capabilities

Call for change

One of the world’s largest food and beverage companies has hundreds of brands under its belt. But amid global supply chain disruption , labor shortages and pandemic-fueled shifts in consumer demand, getting those products onto store shelves was becoming more difficult.

The company’s service level, measured by Case Fill Rate (CFR), was only reaching about 84%—some 11-12 percentage points below pre-pandemic performance. So, for example, a retailer looking to stock 100 bottles of a product may only receive 84 at the expected time of delivery.

With orders delayed or incomplete and shelves empty or understocked, the company was concerned about losing market share—and the trust of consumers. The company needed to rethink how it could effectively and efficiently handle supply chain management. So the company turned to Accenture to help identify the heart of the issue and collaborate on potential solutions.

supply chain management in case study

When tech meets human ingenuity

Accenture helped the company build a roadmap to a more resilient system. They implemented a  control tower  to provide visibility across all operations. A new Sales and Operations Execution (S&OE) team was tapped to handle short-term issues so the supply chain planning team could focus on long-term strategy.

The teams found ways to make existing tools and data more useful and responsive, while adding new processes and governance to fill in the gaps. By connecting existing analytics dashboards to an ERP system and other data sources, the S&OE team could create predictive reports. By adding proactive alerts that addressed potential issues up to six weeks out, they could also make short-term adjustments to save valuable time and effort—and to actively plan for disruptions.

supply chain management in case study

Supply chain control tower – visibility to value

Learn how you can make your supply chain networks more customer-centric, sustainable and agile

A valuable difference

With end-to-end visibility, more efficient organization and a set of new routines and best practices to connect disparate teams, supply chain network issues are now much more manageable. The results are evident in the numbers: The company saw its case fill rate pass 90%—a level it had not achieved in more than two years. Soon, it was finishing its month with record volumes. 

The greater resiliency built into the new system means the company is prepared for what’s ahead and can react more efficiently to future supply chain disruption. In reimagining its operations, the company is orchestrating the change it needs to deliver customers what they expect. Now, retailers are more likely to get the products they want, when they want them—keeping shelves full and consumers happy.

supply chain management in case study

Meet our lead

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Gabriel Montoya

Related capabilities, supply chain & operations.

Reimagining tomorrow's supply networks to positively impact business, society and the planet.

Resilient supply chain

Build a secure, responsive supply chain network that anticipates and adapts to disruptions, market changes and customer demands.

Consumer goods & services

Welcome to the new era of commerce.

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The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM

The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM

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Book description

30 up-to-date case studies illuminate every aspect of modern supply chain management

• Risk management, analytics, global supply chain issues, and much more

• Innovative processes, technologies, strategies, and tactics

• An indispensable resource for both students and practitioners

This casebook brings together 30 focused cases addressing virtually every aspect of supply chain management, from procurement to warehousing, strategy to risk management, IT to supplier selection and ethics. A global team of contributors presents key challenges in industries ranging from pharmaceuticals to fashion and previews issues ranging from the “limits of lean” to the potential of 3-D printing.

Cases vary in length and complexity, offering maximum flexibility to both instructors and readers; a convenient table provides fast access to specific topics. Qualitative cases are supported by relevant discussion questions and sample responses;  quantitative cases are supported by completed numerical solutions, and, where applicable, associated spreadsheets.

Table of contents

  • About This eBook
  • Copyright Page
  • Dedication Page
  • Acknowledgments
  • About the Author
  • Objectives of the Book
  • Organization of the Book
  • Salvation Army: Origins and Purpose
  • United States Southern Territory and Salvation Army–Dallas ARC
  • Discussion Questions
  • Products and Markets
  • Vertically Integrated Supply Chain
  • The Manufacturing Process
  • Investment in Collaborative Planning, Forecasting, and Replenishment (CPFR)
  • Stanford Blood Center: “Give Blood for Life”2
  • A Snapshot of the SBC-SUMC Supply Chain in 2006
  • Company Background
  • Financial Risk Management Background
  • The Automobile Industry in China
  • Toyota China’s Production Planning and Demand Management
  • The Company
  • BESSI Leather Goods
  • The Central Role of Planning
  • The Challenge
  • Appendix 7-1 Gantt Chart of the Fashion Product Collection Definition (from Grid Definition to Start of Production)
  • Appendix 7-2 Fashion Product Collection Definitions
  • Appendix 7-3 Demand Forecasting Process
  • Case 9. Multi-Echelon Inventory Decisions at Jefferson Plumbing Supplies: To Store or Not to Store?
  • Introduction
  • The Indian Pharmaceutical Industry
  • The Indian Pharmaceutical Supply Chain
  • Upstream Supply Chain for High-Range Cements
  • Appendix 13-1: Baseline Data and Three Solutions Offered by UPS
  • Organization Background
  • Organizational Structure and Facility Layout
  • Operations Management

Supply Chain Management

  • Two Different Perspectives
  • Overview of Fair Trade
  • The Fair Trade Supply Chain
  • Criticism of Fair Trade
  • Starbuck’s Fair Trade Policy
  • Company Overview
  • The Rebranding Process
  • Background for the Cooperative and the Industry
  • Transaction Costs Approach
  • COAPEL Supply Chain
  • Process Reforms
  • Organizational Operations
  • Case 24-1: Helmets
  • Case 24-2: Puffs
  • Case 24-3: Sirop
  • Case 24-4: Blower
  • Jacket’s Decisions
  • The Meeting
  • Plant Visit
  • Bangalore: City Statistics1
  • Collection of Waste
  • Role of Non-Governmental Organizations (NGOs)
  • About the Company
  • The Power Sector in India
  • Cloud Computing
  • Supply Chain Structure of CEL
  • Appendix 27-1: CEL’s Balance of Plants Business in the Power Sector
  • Appendix 27-2: Trends in Installed Generating Capacity of Electricity Nonutilities in India from 1970–71 to 2010–11
  • Appendix 27-3: Business Process of CEL Sourcing
  • Spare Parts Supply Chain Management at IGNYS Automotive
  • Industry Background
  • Introduction of the Case Companies
  • Search for an International Partner
  • Joint Business Development and Complementary Service Offering
  • Joint Project Illustrations
  • Mutual Benefits from International Logistics Partnership
  • Classification of Risks
  • General Supply Chain Resilience Model
  • European Case Study
  • Appendix 30-1
  • Financial Times Press

Product information

  • Title: The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM
  • Author(s): Chuck Munson
  • Release date: June 2013
  • Publisher(s): Pearson
  • ISBN: 9780133367300

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Case Study: When Tragedy Strikes Your Supply Chain

  • Ram Subramanian

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In the wake of a factory collapse, a clothing retailer must decide whether to relocate production.

Laura Cronenberg, the CEO of Tots & Teens, sipped her black tea in the lounge of Shahjalal International Airport and took some time to collect herself before her flight departed. The past few days had been a whirlwind, and she was still trying to make sense of how her work life had transitioned so abruptly from celebration to crisis.

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Share these free Supply Chain Management case studies with your class 

Engage your students with real-world case studies that provide insights into supply chain practices, challenges, and opportunities. Share each case study with your students by simply copying and pasting the activity page URL into your learning management system (LMS).

Case 1: Rising Health Care Costs And The Role Of Outsourcing And Offshoring In The U.S. Health Care Sector

In this case study, your students will identify factors that are driving the health care costs higher in the United States than in peer countries. They will also discuss advantages and disadvantages of emerging trends in supply chain management such as adopting outsourcing in health care. After reading the case, they are encouraged to create an argument in favor of or against the view that health care offshoring is a threat to the U.S. health care industry.  See case study . 

  • Case 2: McDonald’s Reinvents Itself Again

In this case study, your students will identify factors that are affecting demand management in the fast food industry and evaluate the reinvention strategy that McDonald’s has used to keep their fingers firmly on the pulse of their international customer base. Students will also be asked to advice McDonald’s with regards to future trends and the changes it should consider. After reading the case, they are encouraged to research areas in which the company plans to reinvent itself in the coming years, particularly in light of the appointment of its new CEO and the COVID-19 pandemic. See case study

Learn more about our offerings for your Supply Chain Management course:

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Supply Chain Management—A Case Study of Huawei’s Supply-Chain Chip Shortage

  • Conference paper
  • First Online: 08 October 2023
  • Cite this conference paper

supply chain management in case study

  • Jiangke Chen 7  

Part of the book series: Applied Economics and Policy Studies ((AEPS))

Included in the following conference series:

  • International Conference on Business and Policy Studies

1012 Accesses

Today’s business environment is more competitive and complex. Decreased trade barriers and more developed countries promoting businesses bring more businesses into the market. There is also more competition among organizations because businesses are introducing newer and cheaper innovations at a faster rate Innovation in organizational processes can make significant changes in the product output. Supply chain management is a potential area for technological innovations. Therefore, this paper will focus on the extent to which automation technology and blockchain technology support modern supply chains, and take Huawei as an example to study how Huawei’s global supply chain provides it with a competitive advantage. And makes a study on the current supply chain dilemma faced by Huawei and puts forward feasible solutions. The study found that automation can benefit enterprises by achieving faster and more efficient operations in inventory management and warehouse management. However, enterprises also need to be aware of the high cost of using automation. Blockchain technology can improve supply chain stability and security through smart contracts and shared ledger management. But there are also problems, such as a lack of laws and regulations that reduce the overall efficiency of the supply chain. Huawei’s use of reverse logistics and management of distribution channels have enhanced its supply chain’s competitive edge, but now it faces a chip shortage. For the current Huawei, finding backup suppliers, stabilizing consumer confidence, and maintaining investment in chip research and development are feasible ways to solve the existing problems.

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Sajadieh, M.S.: Global Supply Chain Management. In: Zanjirani Farahani, R., Asgari, N., Davarzani, H. (eds) Supply Chain and Logistics in National, International and Governmental Environment. Contributions to Management Science. Physica-Verlag HD (2009). https://doi.org/10.1007/978-3-7908-2156-7_3

Thongyod, S.: The Strategic Analysis of Huawei Investment & Holding Co., Ltd. MGN512 - Strategic Management. Third Semester, Academic Year 2018 Master of Business Administration, Stamford International University (2019)

Cole, R., Aitken, J.: ‘The role of intermediaries in establishing a sustainable supply chain’. J. Purchasing and Supply Manage. 26 (2) (2020). https://doi.org/10.1016/j.pursup.2019.04.001

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Berning, S.C.: The role of multinational enterprises in achieving sustainable development-the case of Huawei. European J. Sustainable Dev. 8 (3), 194 (2019)

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Jiangke Chen

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Xiaolong Li

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Chen, J. (2023). Supply Chain Management—A Case Study of Huawei’s Supply-Chain Chip Shortage. In: Dang, C.T., Cifuentes-Faura, J., Li, X. (eds) Proceedings of the 2nd International Conference on Business and Policy Studies. CONF-BPS 2023. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-99-6441-3_3

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I find that most companies’ understanding of supply chain planning is immature, and that next week, at the Gartner Supply Chain Summit in Orlando, that many will don their Mickey ears to discuss what I consider outdated supply chain planning models. Buying supply chain planning software is hard.

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Professionals in supply chain management use various methods to identify best practices to improve the operations. Analysis of case study is certainly one of the most popular methods for people from business management background. Supply Chain of fashion industry involves a time based competition.

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Unilever strategic supply chain sets them apart from the rest and gives them the agility to process over 25 million customer orders annually, generating an annual revenue of $74.14B. Sustainability Initiatives : Commits to reducing environmental impact through sustainable sourcing , packaging, and waste reduction.

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20 Years of Outsourcing Come Back to Haunt Boeing

FEBRUARY 19, 2024

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  • Case studies

Supply Chain Management: Case studies

  • Article Search
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  • Suppliers & customers

Why case studies?

Case studies from harvard, scholarly journal articles, other journals as sources for case studies.

  • Encyclopedias ...

Case studies can provide:

  • Profiles of real, individual companies, including information about their work processes, relationships
  • Profiles of industries, including information about the structure of the industry, and the relationships within the supply chain
  • Numbers and data

Please note that this is not a guarantee!  But case studies sometimes do provide all of the above ...

Harvard Business School Press vs. Harvard Business Review

  • Two sources:  published as articles in the journal Harvard Business Review ; or published as individual publications by the Harvard Business School Press

We do NOT subscribe to the Harvard Business School Press case studies.  (That would be really expensive ...)  However, please be aware that these case studies are actually quite cheap to buy individually; they go for about $7 each when you buy them directly from Harvard.  Below is a link to their site.

That said, there are some case studies within the journal Harvard Business Review (HBR).  These are not the Harvard Business School case studies (the ones used in the Harvard Business School classes); these tend to be shorter, less detailed and less in-depth, and are usually about fictitious companies.  Also below is a link to the full-text of the HBR.

  • Harvard Business School Press - Cases
  • Harvard Business Review Full-text for 1922 - present. Look for the link "Search within this publication" on the left, above Publication Details. Then search either for " company name and case studies", or " supply chain practice and case studies".

How to read case studies: 

Harvard has some recommendations for this.  Below is a short video introduction and a book about it.

About the ebook:

Read it ONLINE or download individual chapters, that is my recommendation!  Downloading the complete ebook is only necessary if you need to read it OFFLINE; be aware that there are several requirements for downloading an ebook .  

  • Video Introduction to The Case Study Handbook

Cover Art

For these databases, try the following types of searches:

  • company name and case studies
  • work process and case studies
  • supply chain issue / practice and case studies

In each of the databases, what happens after you get to a list of results will vary ... if you need help, please ask?!

Connect to the vendor's website for search tips.

  • SAGE Journals Online from Sage This link opens in a new window Searches full text articles of SAGE journals (approximately 900 titles). Emphasis on the health and social sciences. 1982 - present.
  • Journal of Business Case Studies (Online) Online coverage 2011 - 2019 (v. 7, no. 6 - v. 15, no. 2). 2009 - 2011 content also available here . Exact coverage: Nov/Dec 2009 (v. 5, no. 6) - Sep/Oct 2011 (v. 7, no. 5)
  • Journal of Business Cases and Applications 2007 - present, an open access journal. Published by the Academic and Business Research Institute.
  • Journal of Cases on Information Technology Online full-text only for 2003-2009 . But there is indexing for later time periods, making Interlibrary Loan (ILL) a possibility. Click here for more info about ILL .
  • Journal of the Operational Research Society For this journal we have three different sources for online full-text, covering different time periods. Therefore, the link above goes to the Marqcat record, which will lead you to all three sources.
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Partnerships in the Real World: Great Supply Chain Partners 2024 Case Studies

TWO PEOPLE SHAKE HANDS OVER A DESK

Photo: iStock.com/Wasan Tita

Our annual 100 Great Supply Chain Partners issue is dedicated to showing what supply chain excellence looks like in the real world — through partnership. Technology is critical, of course, but it requires expert help to use it to make supply chains hum.

The best way to illustrate the importance of excellent supply chain partnership is through real-world case studies, and this August’s issue is chock full of them.

See the Full List of 100 Great Supply Chain Partners 2024 Here.

You’ll read how almond producer Blue Diamond developed a strategy to acquire all of the software it needed to run a digitized global supply chain with end-to-end control, one piece at a time.

You’ll learn how BD Biosciences worked with a technology vendor to reduce delivery lead times at a global scale.

We’ll also tell you optimized storage capacity allowed security hardware firm Levata ’s new warehouse to efficiently manage a wide range of SKUs, maximizing storage utilization, and giving the company room to grow.

Read SupplyChainBrain’s latest 100 Great Supply Chain Partners issue now! 

View the Digital Flip Book here.

Then, we’ll dig into how freight brokerage and transportation management company TI & NTG found a way to streamline multiple legacy systems for interacting with customers and carriers. 

Next, you’ll discover how a golf equipment manufacturer, TaylorMade , took advantage of the fact that leases were expiring on its customization and distribution facilities to find a smart way to rejig its distribution network.

Another great partnership success story comes from kitchen cabinet manufacturer, American Woodmark , which deployed voice technology to help workers assembling cabinets perform better, and new employees get up to speed much faster than before.    

Love Twinkies? Find out how snack giant Hostess  significantly increased the accuracy and speed of data available regarding movement of goods in its warehouse.

Another intriguing case study comes from 3PL Langham Logistics , which deployed drones for inventory counts, meaning employees no longer spend long, tedious hours doing manual inventory with forklifts, and there is now less likelihood of misplacing product.

A well-designed supply chain should function like a precision Swiss watch. And timepiece brand Breitling  saw sales increase by 20% in the U.S. the month after it introduced an omnichannel inventory management technology, with online sales revenue increasing by 15% to 30%.

Keeping workers happy is important. International shipping and mailing company Pitney Bowe s found a huge opportunity to improve operational efficiency, as well as employee retention, with a lively, ongoing feedback loop between workers and management.

Finally, we plunge into the world of swimming pools, with pool liner and cover vendor Tara Manufacturing , which reduced its downtime by 75%, saving the company $100,000 in the first year, after implementing computerized maintenance management system.

Running through these case studies is the need for new tools that automate manual processes and supplant legacy systems that were designed for a simpler and less volatile time. Artificial intelligence, in particular, comes to the fore as a means of overseeing just about every aspect of the supply chain, with its ability to make sense of more data than humans could ever manage. 

But humans remain firmly in the loop, and here again we’re reminded of the value of partnership.

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Exploring the Role of Supply Chain Management in Healthcare

Healthcare supply chain management leaders are looking to become more efficient and resilient as they continue to face significant supply chain disruptions..

Jacqueline LaPointe

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Cutting healthcare costs has become a mantra for many hospitals and physician practices, especially as payers start to tie claims reimbursement amounts to quality and cost performance. Many organizations have looked to the billing and services portion of the revenue cycle for budget decreases, but others have started to examine healthcare supply chain management .

The supply chain generally refers to the resources needed to deliver goods or services to a consumer. Therefore, healthcare supply chain management involves obtaining resources, managing supplies, and delivering goods and services to providers and patients. To complete the process, physical goods and information about medical products and services usually go through a number of independent stakeholders, including manufacturers, insurance companies, hospitals, providers, group purchasing organizations, and several regulatory agencies.

In healthcare, managing the supply chain is typically a very complex and fragmented process. Recent supply shortages as a result of the COVID-19 pandemic and other viruses have exacerbated these challenges, making it more difficult for providers to procure the items they need for high-quality care at an affordable price.

However, by promoting efficiency in the healthcare supply chain, hospitals and physician practices can create substantial cost-reducing opportunities across their organization.

Here is a look at what goes into healthcare supply chain management and how healthcare organizations can overcome major challenges to further reduce spending.

What is healthcare supply chain management?

Take a moment to think about what providers use every day to treat patients. Providers use a myriad of items, such as syringes, prescription drugs, gloves, pens, papers, and computers. Employees involved in healthcare supply chain management are responsible for stocking organizations with the products providers need and managing inventory.

However, managing the supply chain is not as simple as making sure providers have enough gloves.

“Simply stated, supply chain is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole,” James Spann, Practice Leader of Supply Chain & Logistics at Simpler Healthcare, said in a 2015 interview.

“The challenge for hospitals is to align the supply chain to the care delivery model.”

The healthcare supply chain starts at the medical product manufacturer where items are produced and sent to a distribution center. Depending on the type of product, hospitals can either purchase inventory directly through the manufacturer or distributor, or the transaction can be conducted through a group purchasing organization, which establishes a purchasing contract with the manufacturer on behalf of the hospital.

Medical products are then sent to the healthcare organization, where the goods are stocked into inventory for providers and patients. The organization ensures that providers are not left without essential medical products and patients have access to potentially life-saving tools.

Another aspect of healthcare supply chain management involves the participation of regulatory agencies, such as the Federal Drug Administration, and healthcare payers, including Medicare and private health insurance companies. Regulatory agencies and payers determine if a medical resource is fit for consumer use and whether providers will be reimbursed for using it on specific patients.

Why is healthcare supply chain management so complex?

Healthcare supply chain management is unique because each stakeholder has their own interests to protect. Different stages in the supply chain flow may be focused on their own goal. Providers may want to use a specific product because they were trained with it, whereas hospital executives aim to purchase the most affordable, quality items. Meanwhile, medical device companies may want to profit from their products.

Since supply chain goals are not always aligned within an organization, the healthcare supply chain management process can be inefficient and fragmented. Healthcare organizations must take into account numerous requests and viewpoints to settle on specific product budgets.

For example, providers may prioritize their own preferences for certain products, while financial managers attempt to cut healthcare costs and reduce out-of-date products. Oftentimes, hospitals face hoarding or squirreling away of certain products by providers.

“In most cases, clinicians just want the products when they need them,” Spann explained . “But to ensure that happens, they oftentimes hoard or opt to manage their own supplies. This can contribute to cost variance and off-contract spending, which are hard to uncover. One more invisible cost that is often overlooked is the time spent looking for supplies or waiting for someone to deliver what they need.”

While this is generally true in healthcare supply chain management, the COVID-19 pandemic has also had a lasting effect on the supply chain. A 2021 analysis of one of the leading GPOs in the country found that healthcare organizations were still struggling to meet increased demand for personal protective equipment (PPE) and other supplies nearly a year after the start of the pandemic.

More recent surges of COVID-19, as well as RSV and the flu, have continued to put a strain on the healthcare supply chain. Healthcare organizations are not only facing active supply shortages, but higher costs for everyday items and constrained levels of equipment.

Ensuring an efficient supply chain is paramount for organizations looking to streamline costs and care. Medical supplies now account for about a fifth of hospital expenses , on average. Supply chain costs are likely to increase in response to widespread inflation and the higher costs of medical devices and items.

How can providers be more efficient and resilient?

Fragmentation, complexity, and disruption are three of the most common healthcare supply chain management challenges. As healthcare organizations continue to face unprecedented price and certain volume growth, implementing strategies to make supply chain management more efficient is key to success.

A 2020 survey of healthcare providers and suppliers found that organizations are overcoming healthcare supply chain obstacles created by COVID-19 by prioritizing US-made goods, gathering more inventory and demand planning data, and relying less on IT.

Over half of survey respondents said more prioritization of products produced in the US would help to alleviate PPE shortages, bidding wars, and other healthcare supply chain challenges in the future. About 57 percent also said more inventory and demand planning data sharing among providers and suppliers would preserve the healthcare supply chain in the future. Another 52 percent reported less reliance on IT and more safety stock.

Other areas of focus for a resilient healthcare supply chain in the future included more investment in inventory visibility across individual health systems (49 percent), closer coordination between clinical and supply chain teams (41 percent), and more investment in demand planning and sensing (31 percent).

“Accurate forecasting is critical if we are to run responsive supply chains, better adapt to supply shifts, and secure what we need to manage a potential second wave and to ramp up elective procedures while also supporting the needs of patients receiving care at home,” said  Bruce Johnson, CEO of Global Healthcare Exchange (GHX), a supply chain management solutions provider.

Some providers have already started improving demand forecasting by building in-house solutions or partnering with other healthcare stakeholders, Johnson stated. However, this area still needs more attention for the healthcare supply chain to overcome other public health threats.

Additionally, interoperable  enterprise resource planning (ERP) systems  that enable providers and suppliers to connect to a national database and communicate with standardized data elements can help the healthcare supply chain become more responsive, which is key during a public health crisis, Johnson concluded.

An ERP implementation at Bayhealth in Delaware led to supply chain management efficiencies.

“An ERP system is so important because it helps drive our personnel management, talent management, payroll, finances, and supply chain management,” Brian Dolan, vice president of resource management at Bayhealth, said in a recent interview with RevCycleIntelligence . “The systems aren’t native to healthcare, but they are a critical investment for healthcare institutions. They ensure the business is running smoothly and efficiently.”

On the supply chain side, the technology helped everyone from executives to clinicians see the bigger picture. So when there was a sudden spike in manufacturer backorders, for example, Dolan was able to show his colleagues that it wasn’t an organization issue, rather an industry-wide problem from a global supply chain disruption.

Greater visibility into the supply chain is key to resiliency and efficiency. Tools like the ERP enable supply chain leaders to pinpoint where items are within an organization and even beyond, such as if there is a backorder at a vendor organization. Modern technology is also bridging the gap between supply chain and the clinical side of healthcare by enabling greater data sharing.

Getting all hospital departments on the same page is also a key strategy for optimizing healthcare supply chain management. In the era of value-based care, healthcare organizations are focused on reducing redundancies and eliminating waste, but providers also need to work together to effectively reduce costs and boost performance.

Value analysis at Bon Secours Mercy Health helped to get everyone on the same page and optimize supply chain management, Amy Whitaker, vice president of supply chain clinical integration, said in a 2019 interview .

Value analysis in healthcare is the process by which organizations purchase supplies and services after considering the product’s impact on care delivery and health outcomes, as well as total cost. The process emphasizes appropriate utilization and pricing, in addition to cost-savings and improved outcomes.

“We take that total picture and we talk through the impact the products will have on patients and our clinicians. That is the leading portion of the analysis,” Whitaker explains. “We always talk to the key stakeholders first to show them the information and see if they are willing to try another product that has very similar quality outcomes and/or better quality outcomes.”

Different automated tools can also help organizations increase price transparency, such as computerized provider order entry systems, which can standardize and streamline physician orders, or Radio Frequency Identification (RFI) technology that can capture volumes of data from a product’s barcode.

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The role of effective vendor management in the supply chain.

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Recently, the world watched as the container ship MV Dali collided with the Francis Scott Key Bridge in Baltimore Harbor. The incident sent shockwaves through global supply chains, once again highlighting the fragility of our interconnected world. The bridge, once a conduit for commerce, became a symbol of vulnerability.

The collision closed the Port of Baltimore, stranding numerous ships and forcing the rerouting of shipments to other ports. It added to increased costs, delays and further strain on an already stressed global supply chain. Like a house of cards, we've seen repeatedly how one mishap can trigger a domino effect and disrupt the flow of goods and services.

While the shipping industry adapted by utilizing alternative ports, I think the collision emphasizes the importance of building resilience in our supply chains and the pivotal role that effective vendor management can play in mitigating such disruptions.

The Jenga Tower Of Global Commerce

Imagine a meticulously planned Jenga tower representing global commerce. Each block symbolizes a different link in the supply chain: Raw material extraction, manufacturing, transportation, distribution and retail. The tower stands tall, a testament to human ingenuity and coordination. However, it's also precariously balanced, susceptible to a multitude of risks:

• A sudden gust of wind (like the pandemic): The Covid-19 pandemic swept through this metaphorical tower of global commerce, knocking out blocks like international travel and labor availability. Factories shut down, shipping containers piled up in ports and supermarket shelves grew bare.

• A tremor in the earth (like geopolitical tension): Trade wars and sanctions can rumble through the tower, destabilizing blocks representing key trading partners. Tariffs rise, borders tighten and the flow of goods slows to a trickle.

• A lightning strike (like cyberattacks): When hackers infiltrate the tower's digital infrastructure, they compromise logistics systems and hold sensitive data hostage. Shipments are misdirected, production grinds to a halt and the entire system teeters on the brink of collapse.

• A torrential downpour (like extreme weather): Floods and hurricanes can also batter the tower, washing away blocks representing critical infrastructure like ports and transportation hubs. Shipments are delayed, crops are ruined and shortages can ripple through the supply chain.

This multi-faceted Jenga tower analogy illustrates the interconnectedness and vulnerability of modern supply chains. A single disruptive event, or a combination of several, can send shockwaves throughout the system, causing delays, shortages and economic losses. The complexity that makes these supply chains so efficient also makes them incredibly fragile.

Vendor Management In Supply Chain Resilience

How can businesses build resilience into their supply chains in the face of such unpredictability? I believe the answer lies in a seemingly mundane yet critical function: Effective vendor management. This unsung hero of supply chain resilience is the glue that holds the Jenga tower together.

Effective vendor management is more than just negotiating contracts and chasing cost savings. It's about forging strategic partnerships, aligning interests and building a network of reliable suppliers who share your commitment to quality, sustainability and risk mitigation. It's about having a Plan B, C and D for when Plan A inevitably goes awry.

Effective vendor management is about setting clear expectations, communicating openly and working together to resolve issues before they escalate into full-blown crises. It's about knowing your partner's strengths and weaknesses and having a contingency plan for when they inevitably drop the ball (because, let's face it, they likely will).

Strategies For Building A Vendor Management Fortress

So, how do you build a vendor management fortress that can withstand the storms of disruption? Here are a few strategies to consider:

1. Diversification

It goes without saying, but don't put all your eggs in one basket. Spread your risk by working with multiple vendors for critical components or services. This reduces your reliance on any single seller, ensuring you have others to fall back on if one fails.

2. Technology

In the early days of my company, we quickly realized the challenges of managing a growing network of vendors across our supply chain. We lacked the visibility and control we needed to proactively address potential disruptions.

This realization led us to develop a centralized platform that streamlined supplier interactions. From this experience, I discovered the critical importance of technology in enhancing efficiency and ensuring effective supply chain management. When looking to incorporate technological strategies to help strengthen your supply chain resilience, look specifically to consolidate vendor information, automate purchase orders, track shipments and monitor performance metrics.

Rather than simply responding to problems as they arise, you want to find ways to anticipate and prevent issues like bottlenecks and delays. Ultimately, I find that the strategic use of technology can empower your businesses to be more agile and responsive in a complex supply chain environment.

Related to technology, data analytics can be used to gain insights into vendor performance, predict potential disruptions, and make informed decisions. Key metrics to employ include on-time delivery rates, quality scores, lead times and responsiveness to assess vendor performance.

4. Communication

Open and transparent communication is the foundation of strong vendor relationships. You can foster this through regular check-ins across channels and proactively sharing information and performance metrics. I also think it's important to prioritize associates who treat you as a true partner—an invaluable factor in navigating supply chain challenges.

5. Continuous Improvement

Regularly evaluate your vendor relationships and performance to identify areas for improvement and optimize your supply chain over time. This is where communication comes in again, and I find that successful collaboration is essential in addressing performance gaps and opportunities for innovation.

The Future Of Supply Chain Resilience

Building a resilient supply chain is not a one-time project; it's an ongoing journey of continuous improvement and adaptation. By investing in strategies toward effective vendor management, businesses can strengthen their supply chains, mitigate risks and ensure the smooth flow of goods and services—even in the face of unforeseen challenges.

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Corporate social responsibility (CSR) in supply chain management (SCM) has attracted attention from businesses and stakeholders, as companies increasingly need to consider their impact on stakeholders and the environment. SCM involves the efficient and economic management of the flow of goods and services, including all processes that transfer raw materials into final products. Companies need to be aware of the following areas of social responsibilities as they pertain to the supply chain: human rights (including working conditions, slave labor, and child labor), occupational health and safety, as well as sustainable production and environmental practices. Companies need to navigate potential ethical, legal, and economic concerns and risks that could arise if they choose a supplier that has, for example, poor safety conditions for their workers, employs child or slave labor, or does animal testing.

Refer to our Business Logistics and Supply Chain Management library guide for literature about managing supply chains and technology innovations affecting business logistics.

Supply Chain Management Organizations

The following online resources link to areas of organizational websites focused on supply chain management.

  • Academy of Management - Operations and Supply Chain Management Division External The Academy of Management is a professional association for management and organization scholars. The Operations and Supply Chain Management Division focuses on the management of the transformation processes that create products or services.
  • Association for Supply Chain Management (ASCM) External ASCM is the leading non-profit trade association in supply chain organizational management that provides certification and training.
  • Council of Supply Chain Management Professionals (CSCMP) External This professional organization has local chapters called roundtables that provide educational events, networking opportunities, and facility tours. Training is available in a variety of formats including e-learning and podcasts, and the organization provides certification for individuals.
  • Institute for Supply Management® (ISM) External ISM is a large, not-for-profit supply management and purchasing professional association that provides in class education, training, certification, leadership development and research. Benchmarking, researching, and networking opportunities are available.
  • International Society of Logistics (SOLE) External The Society is a non-profit international professional society composed of individuals organized to enhance logistics technology, education and management. The organization was originally founded as the Society of Logistics Engineers "to engage in educational, scientific, and literary endeavors to advance the art of logistics technology and management." Chapters conduct technical meetings, symposia, and workshops designed to enhance professional advancement.
  • Material Handling Industry of America (MHI) External MHI is a trade association for the supply chain industry that offers education, networking and solution sourcing for their member companies, customers and the industry as a whole through programming and events with a focus on efficiency, safety, and facility issues.
  • Warehousing Education and Research Council (WERC) External WERC is a professional organization focused on warehouse management and supply chain strategies. It provides networking opportunities, online learning, and facility certification. It provides information on benchmarking and best practices, salaries and wages, and logistics vendor information.

Selected Books on Supply Chain Management

The Library of Congress collections are rich in print materials on supply chain management.  The books listed below link to fuller bibliographic information for each item in the  Library of Congress Online Catalog .

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3 questions food and beverage manufacturers should ask automation suppliers

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By automating key supply chain processes, food and beverage manufacturers can delay or eliminate the need to open new facilities and reduce their exposure to labor uncertainty, helping future proof the food and beverage supply chain while potentially reducing operating costs. 

Automated storage and retrieval systems (ASRS), for example, enable manufacturers to significantly increase storage density and throughput for inbound packaging materials and outbound pallets, which is particularly valuable as real estate and warehouse development costs continue to escalate. Automated or semi-automated palletizing systems provide similar benefits—reducing the space and labor required to create mixed-SKU pallets—to help manufacturers adapt to changing order profiles. 

So, the business case for automation has never been stronger and the challenge shifts to choosing among the multitude of automation suppliers to ensure you get a solution that meets current needs while delivering high value over a long life. Here are three questions to help separate the contenders from the pretenders.

1. "What’s your track record in our industry?"

Automation has a long history in the food and beverage supply chain so it’s not unreasonable to expect an automation provider to have a track record in the industry that stretches back several decades. Swisslog, for example, has automation systems  that have been in continuous operation for more than 30 years at multiple food and beverage manufacturing sites. That experience does more than demonstrate equipment quality and reliability. It ensures a supplier is well-grounded in the industry and understands requirements and how they have changed over time. It also serves as the foundation for building deep organizational expertise. From solution design through lifecycle support, a supplier’s industry experience adds value to every phase of a manufacturer’s automation journey.  The impact can be especially noticeable in installation and commissioning where experience can make the difference between going live on time and on budget and missed deadlines and expensive delays. Customer references are essential to the vendor selection process, but it can also be worth the time to look beyond the references provided to get a sense of a company’s depth of experience and reputation in the industry .

2. "How well does your automation software support process efficiency, inventory management, and traceability?"

The software that controls automation is at least as important to the success of a project as the automation technology itself and that importance should be reflected in the supplier selection process.  Key software requirements for food and beverage manufacturers tend to center on inventory management, traceability and process efficiency . Can the automation software manage inventory based on batch, expiry date, best-by date or any other factors important to your customers? Can it support detailed tracking of movements within the warehouse, both in terms of stock changes and physical location, to ensure traceability? How does it enable efficiency across manual and automated processes, and does it allow you to access and control all aspects of the operation from a single interface ?   A mature, modular software platform that includes WMS, WES and ACS functionality, such as the Swisslog SynQ platform , will have all of these capabilities included in the standard offering.   Beyond functionality, take the time to learn how software is developed and managed as these “behind-the-scenes” processes can have a direct impact on operations. Software is continually evolving so be sure your provider has a multi-year product roadmap, integrates security into design and implementation processes, and has a well-defined plan for technical upgrades. Also, find out if the same platform is used in all regions. A global platform enables software standardization across locations and also allows the provider to focus resources on advancing and supporting one platform rather than allocating resources and expertise across multiple systems.

3. "How are solutions supported across their lifecycle?"

Every automation system requires regular maintenance and ongoing software support. But it’s easy to overlook the importance of these capabilities until a site is down for days while you’re waiting for a technician to travel in from another region or hours because of slow response from software support specialists. At minimum, food and beverage manufacturers should ensure that local hardware support is available and compare average response times and first-time resolution rates for the suppliers they are considering working with. The other factor that should be considered in lifecycle planning is how automation deployed today will adapt to future product and market changes , which may be unknown at the time the system is installed. Can the system be scaled to provide more storage or higher throughputs; can it be easily integrated with complementary automation systems, such as those used in automated or semi-automated mixed-SKU palletizing; and does the supplier have standardized modernization programs that can extend solution life as technology advances? With today’s automation technologies, solutions can be designed to meet current requirements cost effectively while maintaining the flexibility to continue to deliver value as supply chain requirements change.

Automation solutions for food and beverage manufacturers

Automation that works for food and beverage manufacturers

Swisslog has decades of experience providing automation solutions for the food and beverage industry with hundreds of solutions in operation. Our mature and proven portfolio of technologies is designed to meet the needs of food and beverage manufacturers through standardized solutions that simplify operation, management and maintenance. And our modular hardware and software enables configurability, scalability and operating flexibility, backed by industry-leading lifecycle support.

To learn more, visit our website  or contact us .

Joseph Kutek

Sales Consultant, Swisslog ANZ

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U.s. department of commerce to convene supply chain summit focusing on proactive strategies to strengthen economic competitiveness and national security, office of public affairs.

Today, the U.S. Department of Commerce announced it will hold, with the Council on Foreign Relations, a Supply Chain Summit in Washington, D.C. on September 10, 2024. 

The Supply Chain Summit will explore efforts taken by government and industry to shift from reacting to global supply chain disruptions to proactively strengthening supply chain resilience. The Summit will gather leaders from industry, government, academia, and civil society to collaborate and share best practices for preventing and addressing supply chain vulnerabilities.  

During the event, the Department of Commerce will highlight its unique role in assessing and addressing supply chain challenges, including launching a first of its kind Supply Chain Center in the International Trade Administration’s Industry and Analysis unit. The Supply Chain Center fuses deep industry expertise and data analytics to develop supply chain risk assessment tools, deliver key insights, and drive targeted action on select critical supply chains and emerging technologies.

“Securing American supply chains is vital to protecting our national security and enhancing our economic competitiveness,” said U.S. Secretary of Commerce Gina Raimondo. “This summit will help us both engage with industry and highlight strategies the Biden-Harris Administration is leading to develop data-driven tools and proactively make our supply chains more secure.”

Media who would like to register for the September 10 event should email [email protected] and [email protected] . 

Further information about the hybrid Supply Chain Summit and the Department of Commerce’s Supply Chain Center, will be available at trade.gov/supply-chain-center in the near future.

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  3. What is Supply Chain Management? Definition and Overview

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  4. (PDF) H & M Supply Chain management: A case study

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  5. (PDF) Logistics and Supply Chain Management Investigation: A Case Study

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COMMENTS

  1. SCM Case Studies With Examples & Solutions

    They cover different aspects of supply chain management and feature a broad range of companies and situations. SCM case study examples would include an SCM selection project for a manufacturer, or an SCM implementation for a distributor or logistics provider. SCM case studies also feature TEC's own case studies, showing how we've helped ...

  2. Supply Chain: Articles, Research, & Case Studies on Supply Chains- HBS

    New research on supply chains from Harvard Business School faculty on issues including supply chain management, digital supply chains, and improving global supply chains. Page 1 of 61 Results ... In a recent case study, Willy Shih examines factors that go into deciding where companies should locate production centers. ...

  3. Supply chain management

    The Next Supply-Chain Challenge Isn't a Shortage — It's Inventory Glut. Operations and supply chain management Digital Article. PS Subramaniam. Strategies for reducing excess inventory ...

  4. Supply Chain Case Studies

    Click on the "View Library" button (arrow 1) in upper right corner of the Account Management screen. In the Library screen you see a list of available supply chain case studies; click " Import " to load a selected case study into your account; give the imported case a Name, and click " My Account " to go back to your Account ...

  5. Case Study: How Should We Diversify Our Supply Chain?

    Case Study: How Should We Diversify Our Supply Chain? Summary. In the wake of Covid-19's disruptions, Kshore, a Chinese appliance maker, is thinking of realigning its supply chain. Like many ...

  6. Supply Chain Management Case Study: the Executive's Guide

    Four case studies will be presented, namely, 7-11, Tesco, Walmart, Amazon and Zappos. - 7/11 is another popular case study in supply chain management. The integration of information technology between stores and its distribution centers play the important role. Since the size of 7/11 store is pretty small, it's crucial that a store manager ...

  7. H & M Supply Chain management: A case study

    case study. Abstract. By the end of the decade, there are H&M stores in several European countries including. France, where the first H&M store opens 1998 in Paris. COS is offered online in 21 ...

  8. Walmart Supply Chain: How to Build an Integrated Supply Chain

    This case study aims to delve into the significance of supply chain capability for enhancing a company's competitiveness and how it serves as a competitive advantage for companies. ... One of the significant challenges in supply chain management is ensuring alignment of interests among all parties involved, including suppliers, manufacturers ...

  9. Walmart: Supply Chain Management

    This case focuses on the supply chain strategy of Walmart. Set in 2019, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to compare Walmart's source of competitiveness with those of other retailers-both online including Amazon.com and traditional brick-and-mortar retailers, such as Target-to develop insights into the ...

  10. IBM Supply Chain

    IBM supply chain management set out a bold vision to build its first cognitive supply chain. The aim was to have an agile supply chain that extensively uses data and AI to lower costs, exceed customer expectations, ruthlessly eliminate or automate non-value add work and exponentially improve the experience of supply chain colleagues.

  11. Supply Chain Management: Articles, Research, & Case Studies on Supply

    New research on supply chain management from Harvard Business School faculty on issues including what brands can do to monitor their suppliers' factory conditions, how Japan's earthquake and tsunami and caused havoc on retailers and car manufacturers, and the push to improve labor standards in global supply chains.

  12. Retail Supply Chain Systems Analysis: A Case of Walmart

    The case study of Walmart's m anagem ent informa tion system s has s ... [17], the research focuses on enhancing product backorder predictions in supply chain management through Distributed ...

  13. Supply Chain Resilience

    But amid global supply chain disruption, labor shortagesand pandemic-fueled shifts in consumer demand, getting those products onto store shelves was becoming more difficult. The company's service level, measured by Case Fill Rate (CFR), was only reaching about 84%—some 11-12 percentage points below pre-pandemic performance.

  14. PDF Case Study for Supply Chain Leaders: Dell's Transformative Journey

    Dell revolutionized supply chain management with its direct model, configure-to-order (CTO) manufacturing, just-in-time inventory model and impressive cash-to-cash conversion cycle. The ... globalization have challenged the singular supply chain. In this case study, Gartner examines Dell's period of transformative change as it segmented ...

  15. The Supply Chain Management Casebook: Comprehensive Coverage and Best

    Title: The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM. Author (s): Chuck Munson. Release date: June 2013. Publisher (s): Pearson. ISBN: 9780133367300. 30 up-to-date case studies illuminate every aspect ofmodern supply chain management • Risk management, analytics, global supply chain issues, and much ...

  16. Is Apple's Supply Chain Really the No. 1? A Case Study

    To get a closer look at modern-day supply chain at Apple Inc, this case study utilizes the content analysis technique. Apple's Annual Report (SEC Filing) of 2011 is analyzed and simplified supply chain processes are constructed as below; ... Supply chain management is about the relationship between trading partners. Working closely with ...

  17. Sustainable supply chain management: a case study at IKEA

    IKEA as a case study. This case study offers insight into SSCM practices in action. IKEA was chosen for the case study, amongst many, for three primary reasons. IKEA is a global firm with manufacturing and distribution centres across the world; its supply chain is vast and complex.

  18. Case Study: When Tragedy Strikes Your Supply Chain

    Supply chain management Case Study: When Tragedy Strikes Your Supply Chain In the wake of a factory collapse, a clothing retailer must decide whether to relocate production. by . Ram Subramanian ...

  19. Supply Chain Management Free Case Studies

    Share these free Supply Chain Management case studies with your class Engage your students with real-world case studies that provide insights into supply chain practices, challenges, and opportunities. Share each case study with your students by simply copying and pasting the activity page URL into your learning management system (LMS). Case 1 ...

  20. Supply Chain Management—A Case Study of Huawei's Supply-Chain Chip

    2.1 Automation. In supply chain management, enterprises use automation to enhance inventory management, warehouse management and logistics. One of the techniques for inventory management is automated data transfer which includes radio frequency data capture systems (RFDC) and bar code scanning, which can read data through bar codes and provide data on any gap between sales, shipments, and ...

  21. Case Study and Examples

    Supply Chain Shaman. OCTOBER 5, 2018. to This is an example of managing a balanced portfolio and of driving a supply chain revolution. This case study is the best example we have seen of a customer-centric supply chain. In China, for example, more than 40% of the company's business through eCommerce.

  22. Case Study, Sourcing and Supply Chain

    Supply Chain Case Study: the Executive's Guide. Supply Chain Opz. JUNE 1, 2014. Professionals in supply chain management use various methods to identify best practices to improve the operations. Analysis of case study is certainly one of the most popular methods for people from business management background.Supply Chain of fashion industry involves a time based competition.

  23. Supply Chain Management: Case studies

    Case studies can provide: Profiles of real, individual companies, including information about their work processes, relationships. Profiles of industries, including information about the structure of the industry, and the relationships within the supply chain. Numbers and data.

  24. Partnerships in the Real World: Great Supply Chain Partners 2024 Case

    The best way to illustrate the importance of excellent supply chain partnership is through real-world case studies, and this August's issue is chock full of them. See the Full List of 100 Great Supply Chain Partners 2024 Here.

  25. (PDF) The Status of Supply Chain Risk Management in ...

    The framework is tested through a mixed-method multiple case study design in eight South African manufacturing SMEs of different sizes in the furniture and metal industries in Gauteng, South ...

  26. Exploring the Role of Supply Chain Management in Healthcare

    While this is generally true in healthcare supply chain management, the COVID-19 pandemic has also had a lasting effect on the supply chain. A 2021 analysis of one of the leading GPOs in the country found that healthcare organizations were still struggling to meet increased demand for personal protective equipment (PPE) and other supplies ...

  27. The Role Of Effective Vendor Management In The Supply Chain

    This unsung hero of supply chain resilience is the glue that holds the Jenga tower together. Effective vendor management is more than just negotiating contracts and chasing cost savings.

  28. Supply Chain Management

    This book examines how green supply chain management has emerged as a key strategy that can provide competitive advantages with significant parallel gains for company profitability. Greening a company's supply chains can reduce operating cost, boost effectiveness and efficiency while increasing sustainability of the business.

  29. Supply chain automation for food and beverage manufacturers

    But before moving forward with supply chain automation, ask the suppliers you're considering these three questions. By automating key supply chain processes, food and beverage manufacturers can delay or eliminate the need to open new facilities and reduce their exposure to labor uncertainty, helping future proof the food and beverage supply ...

  30. U.S. Department of Commerce to Convene Supply Chain Summit Focusing on

    The Supply Chain Summit will explore efforts taken by government and industry to shift from reacting to global supply chain disruptions to proactively strengthening supply chain resilience. The Summit will gather leaders from industry, government, academia, and civil society to collaborate and share best practices for preventing and addressing ...